First, a word of caution, remember this week we have plenty of fundamental announcements.
Even if you don’t trade the GBPCAD, you are going to like the way it is currently trading. First, take a look at the daily chart:
Don’t you like this chart? It’s clear what the market is doing, once it gets close to the resistance level it gets rejected and reaches the support level, and once it gets close to the support level, it gets rejected again and reaches the next resistance level.
So what do we do here? We just adapt. Right now it is trading pretty close to the resistance level, when do we know when to start looking for trade opportunities? Ahhh good question. To assess this, we need the help of the short term charts, which looks like this:
What a surprise, it is trading in a well defined range. So I have two possibilities here:
- If the GBPCAD breaks the green resistance level (it’s a short term) I’ll start looking for long opportunities.
- But if it breaks the green support level (again, short term level) I’ll start looking for short opportunities.
So I will adapt, I don’t need to guess where the market is going, I’m just going to wait and see where the market goes, when I get the breakout, I start looking for a trade opportunities in the direction of it.